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<Research>CLSA Predicts CN Auto Sales Still Sluggish in Feb, Overall Industry Performance Weak in 1Q
Recommend 13 Positive 39 Negative 12 |
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China's auto sales data for January suffered an unprecedented slide, with the industry average dropping about 30% MoM, according to a research report by CLSA. Due to reduced subsidies and discounts, consumers chose to adopt a wait-and-see approach. Considering the timing of this year's Lunar New Year, CLSA expects sales to remain sluggish in February. That said, Carmakers are likely to introduce a series of new models to re-attract consumers after the Lunar New Year. In particular, BYD COMPANY (01211.HK) will target consumers who are willing to pay for new features. As the overall industry performance will likely be weak in 1Q26, CLSA believes April may be a better time to reassess the industry. The broker has named BYD COMPANY and GEELY AUTO (00175.HK) as its top picks in light of their higher export scale and per-vehicle profitability by 2026. Their target prices are HKD130 and HKD23, respectively, alongside a High-Conviction Outperform rating. AAStocks Financial News |
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